EU debt move to be 'beneficial'

EU leaders’ agreement on the separation of banking debt from sovereign debt should have a “beneficial impact” on future budgets but not on this year’s budget in December, according to the Taoiseach.

Minister for Finance Michael Noonan has said the change would make no difference to the budget for 2013 when the Government is expected to make cuts of a further €3.5 billion. Mr Kenny told the Dáil Mr Noonan was right that the decision “will not have an appreciable difference on one’s contribution on a week-to-week basis to the budget for 2013”.

He said: “We still have to deal with our public financial problem at home. However, it is clear there is an opportunity for a beneficial impact on future budgets.”